Pros and cons of buying property in the USA

 Here are some of the things we have to consider before entering into the US market:

Pros:
Good rentals - cash flow positive properties unlike Australia
Straong Rental yeids.
Good potential for Capital Growth
Easier process to buy a propety with no stamp duty
Strong dollar meaning better buying power
You can claim your trip to the Estates if you are going to check on your property once a year.

Cons:
Property Managers are not as professionals as in Australia
Paying over the odds for the propety
Distance - you will be an absentee landlord
Buying in a rought area without knowing
Not easy to get finance in the US
You will have to consider holding on to the property for a while before you see some growth

Cash flow or Capital Growth?: cities to consider

Capital Growth  or Cash Flow?

High CG - Moderate CF : (From 75k plus)
Charlotte, Nth Carolina,
San Antonio, Texas,
Dallas, Texas
Phoenex, Arizona

Mid/low CG - High CF    (for around 40k to 65k USD )
St Louis
Memphis
Kansas City
Atlanta

Only CF   (aprox 20k to 35k)
Cleverland, Oh

Cities where to buy real estate in the USA - Fast facts: Kansas City

Kansas City  (KC)
I have not consider buying in Kansas as I believe it only provides with cash flow and I would like to see some capital growth as well.  Its been the focus of many Australian investors.

Demographics:  whites 62 per cent black 28 per cent Hispanic 9 percent

• Located in the state of Missouri, Kansas, is the largest city of the state. 
• Over 200 fountains in the city.
• Much of the city's murders and violent crimes occur in the inner core of the city
• Kansas City is headquarters to many fortune 500 including Hallmark
• is one of 10 regional office cities for the US Government
• In 2010 had a population growth of 10percent

Cities where to buy real estate in the USA - Fast facts: Phoenix

Phoenix

Althought I have originally consider this city for my 1st property I believe there is such a oversupply of houses that makes it quite risky in case of losing your tenant.

In recent years as many as a third of new home sales here went to investors and speculators Many of them are now competing with builders to dump their holdings, and prices in some developments have dropped by more than $100k.

• Capital and largest city of the U.S. state of Arizona.
• Has a subtropical climate and has some of the hottest of any major city in the United States with over 110 days in the year with an average temperature of 38 celcius and 5 days per year where the temperature drops to or below freezing.
• Demographigs" 76 percent white -non hispanic- 40.8 percent Hispanic 6.5 African 3 percent asian.

• Home of seven Fortune500 companies.
• In the late 2000 it has earned the title of "Kidnapping capital of the USA" in general the victims are belived to be related to the iligal drug trade.

Cities where to buy real estate in the USA - Fast facts: Atlanta

Atlanta
Atlanta its very popular for it's dramatic for a metro region with a population of more than 5 million people. 
While the city itself is home to only 400,000 people, the greater region includes 110 municipal governments, each determined to beat its neighbors in growth.
Atlanta is expected to have one of the  greatest job growth  and commuters from far-flung suburbs are fighting harder each day to get back inside the I-285 "perimeter" that encircles the city. That has already increased the prices in the more desirable north Atlanta neighborhoods, like Buckhead, forcing less well-heeled newcomers to look outside the perimeter for lower prices.


http://www.youtube.com/watch?v=B5C1TliFzxY

Facts:

• capital and most populous city in Georgia.
• Atlanta is considered to be a top business city and is a primary transportation hub of the Southeastern United States
• Atlanta has the country's third largest concentration of Fortune 500 companies, and more than 75 percent of
• Fortune 1000
• Atlanta has a reputation as the "city in a forest" due to its abundance of trees, unique among major cities.
• Atlanta has a humid subtropical climate, with hot, humid summers and mild winters that are occasionally cold by the standards of the southern USA.
• January averages 42.7 °F (5.9 °C), 
• High temperatures in July average 89 °F (31.7 °C) but occasionally exceed 100 °F (38 °C) 

Writing a Will for your USA property.

Something very important to consider is that the Will you have made in Australia its not going to have any effect in the USA. Therefore its very important to have another will prepared in the USA. Note that the information below may differ from state to state. 

If you fail to make a will before you die (called interstate) your property will be divided between your heirs according to a formula which its fixed by law. Your property does not go to the State unless there are no heirs.

When there is no will there is a personal representative appointed, usually known to you to manage your estate. The cost of this will probably be more than if you had prepared a will and the estate may be subject to a greater court supervision.

  

Things to take into consideration:

- A will its valid until changed or revoked.

-  You can not disinherit your  spouse without a properly executed marital agreement

- If you are not going to leave anything to one of  your children  its a good idea to mention in the will that  no provision is being made for that child.

-  A well prepared will could reduce the estate and income tax that may arise when you die. Estate taxes are usually the largest cash expense an estate can have. 

 - Marriage does not void a will (in Florida), but a spouse acquired after you wrote your will may receive the same portion of your estate that he/she would have received if had you died without a will (at least one-half).

- Make sure that if you contact an attorney, he or she should be  is certified in Elder Law or Wills, Trusts and Estates. 

The importance of setting up an LLC -limited liability company-- for your us property:

Many investors prefer to own the property through an LLC (limited liability company). Some of the benefits are:

• To protect  property owners from personal liability
• You pay less taxes and are protected against bankruptcy
•  Property can easily be placed in an LLC
• Putting property in an LLC places it out of reach of personal creditors

As per wikipedia definition:
"A limited liability company (LLC) is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions. LLCs do not need to be organized for profit.

Often incorrectly called a "limited liability corporation" (instead of company), it is a hybrid business entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). An LLC, although a business entity, is a type of unincorporated association and is not a corporation. The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. It is often more flexible than a corporation and it is well-suited for companies with a single owner.

It is important to understand that limited liability does not imply that owners are always fully protected from personal liabilities. Courts can and sometimes will pierce the corporate veil of corporations (or LLCs) when some type of fraud or misrepresentation is involved^."


 LLC in Georgia

http://sos.georgia.gov/corporations/filing_procedures_llc_2001.pdf